Personal Finance

Biden Pauses Student Loans Through January 31, 2022 And Borrowers Will Get $110 Billion Of Student Loan Cancellation

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President Joe Biden has extended the student loan payment pause through January 31, 2022.

Here’s what you need to know.

Student Loans

In a big win for student loan borrowers, Biden extended student loan relief to help student loan borrowers in the wake of the Covid-19 pandemic. Here is what to expect through January 31, 2022:

  • No federal student loan payments;
  • 0% interest on federal student loans; and
  • No collection of student loans in default

This is Biden’s second extension of student loan relief. He initially extended student loan relief in January for eight months through September 30, 2021. Previously, President Donald Trump also extended student loan relief twice. The first extension was from September 30, 2020 to December 31, 2020 and the second was from December 31, 2020 to January 31, 2021. Congress passed the original student loan relief as part of the Cares Act — the $2.2 trillion stimulus package — in response to the Covid-19 pandemic. This is also a win for Sen. Elizabeth Warren (D-MA) and Senate Majority Leader Chuck Schumer (D-NY), who have advocated to extend the student loan payment pause to at least March 31, 2022. Warren said student loan servicers wouldn’t be ready in time for student loan borrowers to make student loan payments if there was no extension.

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